President Joe Biden and Transportation Secretary Pete Buttigieg announced a new proposal on Monday aimed at holding airlines accountable for controllable cancellations and delays.
What Happened: The proposed rule would require airlines to compensate customers for disruptions, and an expanded Airline Customer Service Dashboard at Transportation.gov will provide further transparency into airlines' compensation policies.
During his speech, Biden expressed understanding for the frustrations faced by American air travelers, noting that taxpayers provided the industry with nearly $50 billion in assistance during the pandemic.
"I know how frustrated many of you are with the service you get from your U.S. airlines, especially after you, the American taxpayer, stepped up in 2020," the President said. He emphasized that getting air travelers a better deal is a top priority for his administration.
Airlines have started to change their policies in response to these concerns, with nine major airlines now covering hotel expenses and 10 paying for meals in cases of controllable delays or cancellations. Airlines like American Airlines Group AAL, Alaskan Air Group ALK, and Frontier Group Holdings ULCC have also addressed family seating, allowing parents to sit with their children without additional charges.
The proposed rule would make it mandatory for all U.S. airlines to compensate passengers with meals, hotels, taxi and rideshare fares, rebooking fees, and cash, miles, or travel vouchers when they are responsible for cancellations or delays. This kind of compensation is already in place in Canada and the European Union, where it has proven effective, Biden noted.
Biden stressed the importance of fairness and the need for continued progress in reversing decades of what he called concentrated corporate power. "This is just about being fair," he said.
The proposed rule and the new dashboard aim to improve the air travel experience for American families, offering increased transparency and accountability for airlines.
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